Gift-tax liability on marriage transfers: custom and future maintenance did not exempt the property gift.

A property transfer to a daughter at marriage remained liable to gift-tax because neither community custom nor an asserted maintenance obligation exempted it. The Kerala High Court treated the registered transfer as a taxable gift and relied on earlier decisions that customary giving of property to daughters on marriage, in Hindu or Christian communities, does not exclude gift-tax liability. It also held that a father's maintenance obligation ends on marriage, so the transfer could not be characterised as a non-taxable settlement for future maintenance.

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Issues: Whether property transferred by the assessee to her daughter at the time of marriage was not exigible to gift-tax on the basis of customary practice or alleged maintenance obligation.

Analysis: The transfer was made through a registered deed and the assessee had herself returned the value of the property for assessment. The Court relied on its earlier decisions holding that any customary practice of giving property to daughters at marriage, whether in Hindu or Christian communities, does not exclude gift-tax liability. It further held that the obligation of a Christian father or Hindu father to maintain a daughter ceases on marriage and thereafter the obligation rests elsewhere, so the transfer could not be treated as a non-taxable settlement on maintenance grounds.

Conclusion: The transfer was held liable to gift-tax and the question was answered in favour of the Revenue and against the assessee.

Final Conclusion: The reference was disposed of by answering the substantive taxability question against the assessee, while declining to answer the remaining limbs as unnecessary.

Ratio Decidendi: A transfer of property to a daughter at marriage does not escape gift-tax merely because it is supported by a community custom or is said to be for future maintenance after marriage.

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